Correlation Between Kingsmen Resources and Nicola Mining
Can any of the company-specific risk be diversified away by investing in both Kingsmen Resources and Nicola Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kingsmen Resources and Nicola Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingsmen Resources and Nicola Mining, you can compare the effects of market volatilities on Kingsmen Resources and Nicola Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kingsmen Resources with a short position of Nicola Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen Resources and Nicola Mining.
Diversification Opportunities for Kingsmen Resources and Nicola Mining
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingsmen and Nicola is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen Resources and Nicola Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicola Mining and Kingsmen Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kingsmen Resources are associated (or correlated) with Nicola Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicola Mining has no effect on the direction of Kingsmen Resources i.e., Kingsmen Resources and Nicola Mining go up and down completely randomly.
Pair Corralation between Kingsmen Resources and Nicola Mining
Assuming the 90 days horizon Kingsmen Resources is expected to generate 0.92 times more return on investment than Nicola Mining. However, Kingsmen Resources is 1.09 times less risky than Nicola Mining. It trades about 0.04 of its potential returns per unit of risk. Nicola Mining is currently generating about 0.03 per unit of risk. If you would invest 28.00 in Kingsmen Resources on August 26, 2024 and sell it today you would earn a total of 12.00 from holding Kingsmen Resources or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsmen Resources vs. Nicola Mining
Performance |
| Timeline |
| Kingsmen Resources |
| Nicola Mining |
Kingsmen Resources and Nicola Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen Resources and Nicola Mining
The main advantage of trading using opposite Kingsmen Resources and Nicola Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen Resources position performs unexpectedly, Nicola Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nicola Mining will offset losses from the drop in Nicola Mining's long position.| Kingsmen Resources vs. First Majestic Silver | Kingsmen Resources vs. Ivanhoe Energy | Kingsmen Resources vs. Orezone Gold Corp | Kingsmen Resources vs. Faraday Copper Corp |
| Nicola Mining vs. Kingsmen Resources | Nicola Mining vs. Gunpoint Exploration | Nicola Mining vs. Themac Resources Group | Nicola Mining vs. Magna Terra Minerals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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